There is an old saying in buying that, “You should hire from your man and not your dream.” This is particularly true when it comes to hiring the right employee. But it’s easy to create a dream job because you don’t know what’s ahead until after you’ve hired someone.
Why you should hire from your man or your dream
You hire someone to perform a service or a skill for a fee. This fee could be what they make by hour, or it could be their hourly wage.
Think of the first person you hired for a job: Was it a plumber, a painter, or someone to mow the lawn? I am sure that, if you, the owner, or the one paying the bill was not comfortable with the problem, you called a plumber, painter, or lawn service to come out and fix it.
A lot of time and money has been spent for you to be able to hire someone to water your house or to perform a task that you only wanted someone to do. Your problem is that no one was the right person for you. Therefore, you deserve a fair wage for the job.
How much you should pay the employee
What you do is an employer-employee relationship. Paying someone hourly or hourly wage translates to a relationship that is, “How much are you going to pay me and what to do, and what do you have to do for me.”
The simple cost-benefit rule
The simple cost-benefit rule determines how much you’re going to pay someone for their work. If you hire them for a wage, then you don’t have to worry about the hourly wage because you need only worry about the cost of running your business or your yard maintenance business.
If, however, you hire someone through a commission, then you have to pay them a salary to ensure that they are actually trying to help your business or your lawn maintenance business. Your goal was to hire someone to perform a specific task. Your goal was to make them an employee of your company. What assignment do you suppose your employee performed on your behalf? Do you realize that they were probably not the right person?
If you hire someone to perform a service, you have obligations. In a business situation, taking a few minutes to train your new employee or new hires costs you money. However, you pay an employee an hourly wage. Fixed costs, such as paying insurance, employee benefits, pay for the hours worked, and things like that, are benefit costs to the provider. You pay your new employee an hourly wage.
Why hourly or hourly wage people are wrong for you, and still wrong for a lot of others
There are all types of hourly wage workers. Are these types of workers right for your company? Maybe they should be. These types of workers are avoidable. But why avoidable?
When you move to a departmental work structure, it’s not uncommon to start a new type of work or department. So you hire your new admin assistant, sales agent, doctor, and trainer as hourly wage employees. Why? You were doing what you were doing in the original department. So you can hire someone at a new payroll rate as an hourly wage, to help with the new department, and you don’t need to worry about adding to your HR load.
Or again, you hire someone who is going to make you more money. But you won’t be hiring another person. You should just recognize a new employee and not worry about someone else taking over the department. Very common.
This is a prime example of a way to create a dream job for yourself while at the same time, creating disaster for your dream job.
Do your individuals know how to hire the right employee for the right job for the right pay? The situation described above is very common. The pay you get at a hourly wage isn’t going to be anywhere near what you need to make to make a salary.
Get the better employee. That is what the HR department is about. Hiring the right employee and getting them onboard with the new department is what you have to ensure.
